Tagged: Class Valuation

The Zach Simas Coercion Campaign 14

The Zach Simas Coercion Campaign

A double standard inside the appraisal industry has been exposed yet again. Fellow appraiser Zach Simas recently detailed a blatant attempt at corporate coercion by Class Valuation, commonly nicknamed “ClassLess” across our profession. While the national appraisal management company skates through multiple federal lawsuits and major compliance scandals, the independent appraiser who stood his ground on ethics is the one facing a state board investigation. This reality lays bare a deeply broken system where middlemen hold the power and the boots on the ground carry all the risk. The trouble began when Zach completed an FHA report for Class Valuation...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News

It’s Time to Take Out the Junk: AMC Practices Exposed 42

It’s Time to Take Out the Junk: AMC Practices Exposed

Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices into the sunlight so the profession can finally take out the junk. “Evil AMCs thrive not only through active malice, but also through the silence and inaction of those appraisers who could intervene.” — Edmund Burke… if he had been an appraiser It’s a conversation we’ve all had before: “I’ve already got all my information entered. I’m used to the system. I don’t want to learn a new process. I guess I’ll just keep paying the extra couple of dollars...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

First the Borrower Fee. Now the Appraiser Compensation in Court 33

First the Borrower Fee. Now the Appraiser Compensation in Court

Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one part of the transaction. Two pending lawsuits involving Class Valuation, LLC approach the appraisal process from opposite directions. One asks whether staff appraisers were properly compensated for overtime. The other asks whether a homeowner was properly informed about how an appraisal-related fee was divided. The cases are legally separate. They involve different plaintiffs, statutes, and courts, and neither has produced a finding that Class Valuation violated the law. Viewed together, however, they raise a question the appraisal profession has asked...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

The Appraisal Fee Lawsuit AMCs Deserve 60

The Appraisal Fee Lawsuit AMCs Can’t Outrun

The class action lawsuit filed against CrossCountry Mortgage and Class Valuation arrives at a moment when many in the appraisal profession have grown tired of watching Appraisal Management Companies (AMCs) drain the industry from the inside. Appraisers have described AMCs as unnecessary middlemen who inflate fees, hide their cuts, interfere with the work, and contribute nothing of substance. This case finally puts those practices into the record with a level of clarity that appraisers have been waiting for. The complaint describes how borrowers are charged appraisal fees that often exceed one thousand dollars, yet the appraiser receives only a fraction...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

Systemic Failures in FHA Appraisal and Loan Review 41

Systemic Failures in FHA Appraisal and Loan Review

This case exposed the cracks in an FHA system where failures by the lender, the AMC, and the review process aligned in ways that no borrower could have anticipated. It shows how easily an appraisal error can escalate when every safeguard designed to prevent harm breaks down at the same time. When the first article about this case ran on July 15, 2024, it already raised serious concerns about how an FHA appraisal could miss something as basic as the type of water and sewer service. What has emerged since then paints a much larger picture, one that shows how...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Federal Housing Administration

The Shadowy AMC Fees Draining Billions from Homebuyers 158

The Shadowy AMC Fees Draining Billions from Homebuyers

The hidden costs of appraisal management companies (AMCs) in the real estate industry have faced growing scrutiny, as highlighted by a recent Business Insider article titled “The Hidden Middleman who cost homebuyers $12 billion dollars and counting.” The article examines the opaque practices of AMCs, which frequently charge exorbitant fees that can exceed the amount paid to the appraiser. As highlighted by former Appraisal Institute CEO Cindy Chance, this issue has faced significant resistance from entrenched interests, mirroring the challenges faced in other industries such as the pharmacy benefit manager (PBM) sector, which ultimately led to an FTC investigation. The...

AI / AMC / Appraisal / Appraisal Institute / Appraisal Management Companies / Appraisal Organizations

Fight Unfair AMC Practices - Leverage State Authorities 34

Fight Unfair AMC Practices – Leverage State Authorities

Alarmed by predatory practices among AMCs, a peer has drafted letters urging appraisers to call on state authorities to address unfair AMC conduct and potential regulatory violations.  As appraisers, we have faced an ongoing challenge with Appraisal Management Companies (AMCs) offering fees that are well below the customary and reasonable rates for standard appraisal assignments. This practice has created a troubling trend of “bid wars” where AMCs pit appraisers against one another, driving down fees to unacceptably low levels. In response to this issue, a peer has provided two draft letters that can be easily modified and used by other...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

Lack of Fee Transparency: Exposing the AMC Exploitation 71

Lack of Fee Transparency: Exposing the AMC Exploitation

By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge exorbitant prices and pocket the difference (as shown in Figures 1 through 10), exploiting the consumer’s lack of knowledge.  Thank you for the opportunity to comment on the Consumer Financial Protection Bureau’s Request for Information on Fees Imposed in Residential Mortgage Transactions. The growth of Appraisal Management Companies (AMCs) in the wake of the 2008 financial crisis was driven by a well-intentioned but ultimately misguided belief that they could help “ensure the integrity and independence” of property valuations. The reasoning...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / CFPB

Uncovering Flaws in FHA Appraisal & Loan Review Process 44

Uncovering Flaws in FHA Appraisal & Loan Review Process

The story of this single mother’s harrowing experience with a defective home purchase and HUD’s negligent oversight exposes deep flaws in the FHA appraisal and loan review process. After sacrificing for years to rebuild her credit and earn the right to become a homeowner, this borrower found her dream home in the country – or so she thought. During the home inspection, several issues were flagged. The seller, an investor who had purchased the home in an estate sale, was unaware of the septic system’s location. The seller agreed to have the tanks pumped so the location could be determined....

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / CFPB

Class Valuation Maximizing ROV Conversion Rates 50

Class Valuation Maximizing ROV Conversion Rates

It’s truly mind-boggling that a company would brag about their higher ROV conversion rates for the ROV process as if it’s some kind of badge of honor. Recently, Class Valuation took to social media to boast about their Reconsideration of Value’s process (ROVs), claiming higher conversion rates and urging clients to choose them for a confident closing. Any company that is touting they have the highest ROV conversion rates should raise some red flags. The process of ROVs is meant to be a last resort when there are legitimate concerns or discrepancies in an appraisal report. It should not be...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending